Firestone Steel Products Co. v. Barajas

• Decision Date: 19 September 1996
• Docket Number: No. 95-0382,95-0382
• Citation: 927 S.W.2d 608
• Parties: Prod.Liab.Rep. (CCH) P 14,695, 39 Tex. Sup. Ct. J. 848 FIRESTONE STEEL PRODUCTS COMPANY, formerly a Division of the Firestone Tire & Rubber Company, Accuride Corporation, the Firestone Tire & Rubber Company, and Bridgestone/Firestone, Inc., Petitioners, v. Manuel BARAJAS and Luisa Barajas, Respondents.
• Court: Texas Supreme Court

Page 608

927 S.W.2d 608

Prod.Liab.Rep. (CCH) P 14,695, 39 Tex. Sup. Ct. J. 848

FIRESTONE STEEL PRODUCTS COMPANY, formerly a Division of the Firestone Tire & Rubber Company, Accuride Corporation, the Firestone Tire & Rubber Company, and Bridgestone/Firestone Inc., Petitioners, v. Manuel BARAJAS and Luisa Barajas, Respondents.

No. 95-0382.

Supreme Court of Texas.

Argued Oct. 11, 1995.

Decided June 28, 1996.

Rehearing Overruled Sept. 19, 1996.

Maria Wyckoff Boyce, Matthew P. Eastus, James Edward Maloney, Houston, for Petitioners.

William R. Edwards, Corpus Christi, for Respondents.

BAKER, Justice, delivered the opinion of the Court, in which PHILLIPS, Chief Justice, GONZALEZ, HECHT, CORNYN, SPECTOR, OWEN, and ABBOTT, Justices, join.

This is a wrongful death case based on allegations of negligence, strict products liability, and civil conspiracy against Firestone Steel Products Company and others. The trial court granted summary judgment for Firestone. The court of appeals reversed and remanded the cause for trial. 895 S.W.2d 789. We reverse the court of appeals' judgment and render judgment for Firestone. We hold that in the circumstances of this case, the original designer of a general product concept that is copied, modified and used by a manufacturer is not liable for injuries resulting from the use of the manufacturer's product.

I. THE BACKGROUND FACTS

A. THE WHEEL DESIGN

In the late 1950's, Firestone designed and patented a new single-piece wheel known as the 15 degree bead seat taper. For the first time, the design permitted installation of a tubeless tire on a wheel. Firestone's initial 15 degree bead seat taper wheel was a 22.5-inch wheel for heavy trucks. The design made it possible to use tubeless tires, instead of tube-type tires, on trucks. Firestone allowed the entire industry to use the design without charging a license fee under its patent.

Firestone's original design was for larger size tires and rims used for 18-wheel semi-tractor trailer rigs. In the mid-1960's, Firestone developed a 15 degree bead seat taper wheel with a 16.5-inch nominal diameter. Truck owners could use this wheel on lighter trucks such as 3/4- or 1-ton pick-ups. Firestone's innovation was not a single wheel design, but a dual wheel with two tires side by side. This wheel is used only with 8- or 9-inch tires, and only for dual-wheel applications.

Firestone patented its design. However, it granted royalty-free licenses of its design for domestic manufacture of tires and wheels. Firestone sought to profit, not from licensure of its patent, but from industry use of products that would help build customer demand for Firestone's own products.

Kelsey-Hayes Company modified Firestone's original 15 degree bead seat taper wheel design to design its own wheel. Kelsey-Hayes' design changed Firestone's original patented wheel design by making it 16.5 inches in diameter, by making it narrower to fit only 6- or 6.75 inch tires, and by making it with a "hump bead." Kelsey-Hayes' design was only for a single wheel by itself, not a dual wheel. Kelsey-Hayes manufactured its own 16.5 hump bead wheel. Firestone did not participate in the manufacture or marketing of Kelsey-Hayes' tires in any way, and did not collect a royalty from Kelsey-Hayes for use of Firestone's patented design.

B. THE ACCIDENT

In the early 1970's, the tire and wheel industry began receiving reports of accidents occurring when tire mounters tried to mount and inflate 16-inch tires on 16.5-inch wheels. The Rubber Manufacturers Association, a tire industry group that monitors after-market problems, developed sidewall warnings for 16-inch tires.

One morning, Jimmy Barajas apparently attempted to fix a flat tire on a 3/4-ton pickup. He apparently tried to put a 16-inch tire made by General Tire Company on a 16.5-inch wheel made by Kelsey-Hayes Company. The tire exploded, fatally injuring Jimmy. No one witnessed the accident.

C. THE LITIGATION

1. IN THE TRIAL COURT

Jimmy's parents, Manuel and Luisa Barajas, sued Firestone, General Tire, Kelsey-Hayes, the Budd Company, and others for their son's wrongful death. They alleged that Firestone was liable for Jimmy's death based on claims of strict products liability and negligence. The Barajases asserted that Firestone had originally designed, manufactured and sold a component part of the wheel in question. The Barajases also alleged that Firestone engaged in a civil conspiracy to conceal and obscure the hidden dangers of trying to mount mismatched tires and wheels.

Firestone answered and moved for summary judgment. Firestone alleged in its motion that its summary judgment evidence showed, as a matter of law, that it did not design, manufacture or sell the wheel in question. In support of its motion, Firestone relied on its expert witness' deposition. Firestone also relied upon the Barajases' partial motion for summary judgment against Kelsey-Hayes and their summary judgment evidence that showed, as a matter of law, Kelsey-Hayes manufactured the wheel in question. Firestone also argued that it could not be liable based upon its original patent.

The trial court heard both motions at the same time. The trial court granted the Barajases' a partial summary judgment, holding Kelsey-Hayes manufactured the wheel. The trial court also granted Firestone a summary judgment on all the Barajases' claims and rendered a take nothing judgment for Firestone against the Barajases.

2. ON APPEAL

The Barajases appealed the take nothing judgment. They contended that Firestone did not conclusively negate an essential element of their strict products liability, negligence and civil conspiracy causes of action. Specifically, they claimed that Firestone did not negate their allegations that Firestone designed, manufactured and sold a component part of the wheel in question. They argued that Firestone was liable for faulty design of the tire and wheel that killed Jimmy Barajas because of Firestone's original patent.

The court of appeals agreed with the Barajases, and held that Firestone's summary judgment proof did not negate all the Barajases' allegations. Specifically, it held that Firestone did not negate:

(1) the outstanding theory that Firestone manufactured, designed or sold a component part of the wheel that allegedly killed Jimmy Barajas;

(2) the allegations that Firestone had engaged in the business of introducing the wheel in question, or a component part thereof, into the channels of commerce; and

(3) the allegations that Firestone had consciously and knowingly combined and conspired with others to engage in an intended course of conduct which resulted in Jimmy's death.

3. APPLICATION FOR WRIT OF ERROR

In its Application for Writ of Error, Firestone argues that the court of appeals erred because it improperly held that Firestone's summary judgment evidence did not negate the Barajases' claims that Firestone manufactured, designed or sold a component part of the wheel that allegedly killed Jimmy Barajas. Firestone also argues that the court of appeals erred in concluding that Firestone's original design idea could subject Firestone to liability for injury caused by a product that was designed, manufactured and sold by a different entity. Firestone argues that the court of appeals' decision creates an expansive new cause of action for original design defects that is not recognized under strict liability tort law in Texas.

The Barajases respond that the court of appeals was correct in reversing Firestone's summary judgment. The Barajases assert that Firestone's summary judgment motion and proof did not meet the Barajases' allegations and proof that: (1) Firestone originally designed, patented, licensed and marketed the tire/rim combination using the 15-degree-bead-taper and low-flange-height features; (2) Firestone was the cause and the primary cause of such design becoming a standard for the tire-wheel industry; (3) Firestone was a producing, proximate and legal cause of the use of that design in the wheel in question; (4) Firestone originally designed, initiated, promoted, marketed and introduced to the tire-wheel and vehicle industries the 16.5-inch nominal diameter drop-center single piece wheel/rim design such as the wheel in question; and (5) but for Firestone, this system would not exist today.

The Barajas further argue that Firestone had a duty to warn users including their son, Jimmy, of the hazards associated with the use of its products. The Barajases conclude that because Firestone patented, marketed and licensed the 15-degree-bead-taper design and the low-flange-height feature and the 16.5-inch wheel, Firestone should be held accountable the same as if Firestone had manufactured the particular wheel in question.

We granted Firestone's application for writ of error.

II. APPLICABLE LAW

A. NEGLIGENCE

At common law, a negligence cause of action consists of: (1) a legal duty owed by one person to another; (2) a breach of that duty; and (3) damages proximately resulting from the breach. Greater Houston Transp. Co. v. Phillips, 801 S.W.2d 523, 525 (Tex.1990). A prerequisite to tort liability is the existence of a legally cognizable duty. Graff v. Beard, 858 S.W.2d 918, 919 (Tex.1993). Whether a duty exists is a question of law. Joseph E. Seagram & Sons v. McGuire, 814 S.W.2d 385, 387 (Tex.1991); Greater Houston Transp. Co., 801 S.W.2d at 525.

B. STRICT PRODUCTS LIABILITY

In Texas, section 402A of the RESTATEMENT (SECOND) OF TORTS governs claims for strict liability in tort. See RESTATEMENT (SECOND) OF TORTS § 402A (1965); Lubbock Mfg. Co. v. Sames, 598 S.W.2d 234, 236 (Tex.1980); Armstrong Rubber Co. v. Urquidez, 570 S.W.2d 374, 375-76 (Tex.1978). Section 402A defines the cause of action as:

(1) one who sells any product in a defective condition unreasonably dangerous to the user or consumer or to his property is subject to liability for physical harm thereby caused to the ultimate user or consumer, or to his...